Transfer Clause for Corporate Relocation Tenant

[Stacey Tiamfook]

I am in the process of screening a tenant that is relocating from Germany.  Their company is going to pay their living expenses while they are in the US.  We were getting ready to sign a 1-year lease but my realtor informed me that they are signed to a 3-year contract with their company so I offered them a 2-year lease.  The prospective tenants would like to do the 2-year lease option but their company requires them to have a transfer clause addendum on the lease, which allows them to terminate the lease with 60-days notice if the employer transfers the tenant from the local worksite.  I feel uncomfortable with this clause as this basically allows them out of the lease at no cost.  I will then be stuck with the turnover expenses and trying to find another tenant.  I told my realtor that I would sign if we also include an early termination fee of 2 months rent.  I am waiting to hear back from the applicant and their company. 

Has anyone dealt with something like this?  Can you share your experiences?